What does it take to set up and manage a nonprofit endowment the right way? How can boards align investments with mission values while avoiding restrictions that limit flexibility? And where does artificial intelligence (AI) fit into the future of nonprofit operations?

In this episode of the Nonprofit Counsel Podcast, host May Harris sits down with Kate Azar, Director of Nonprofit Strategy at PNC Institutional Asset Management, to unpack the strategies, risks, and opportunities nonprofits face when managing endowments and exploring new tools like AI.

From policies and donor restrictions to responsible investing, ESG, and AI efficiency in donor communications and reporting, this conversation helps nonprofit leaders think intentionally about the future of governance, investments, and technology adoption.

What You Will Learn in This Episode

✅ When an endowment is right for your nonprofit—and when it isn’t
✅ How to align investment policies with mission and ESG values
✅ Why flexible policies matter for crisis readiness (like COVID)
✅ The risks and rewards of AI adoption in nonprofits

Is your nonprofit ready to align investments, policies, and technology with your mission? Visit NonprofitCouncil.com to access strategies and tools to help you build sustainable impact and lead with confidence.

Episode Timestamps

• 0:00 – Why nonprofits are slow to adopt new tech but how AI creates efficiencies

• 1:03 – Meet Kate Azar, Director of Nonprofit Strategy at PNC

• 2:28 – When an endowment makes sense for nonprofits

• 5:01 – Donor restrictions, policies, and risks with endowments

• 7:00 – Mission-aligned investing and ESG considerations

• 9:20 – The importance of flexible endowment policies during crises

• 12:01 – Keeping policies updated: “spring cleaning” for governance

• 13:19 – Nonprofits, AI, and efficiency gains

• 15:12 – Risks: data privacy, bias, and security with AI

• 17:02 – Using AI for fundraising, donor messaging, and reports

• 20:03 – Policies for AI use in nonprofits

• 23:06 – Final thoughts: policies, people, and preparing for generational shifts

• 26:03 – Succession planning and generational wealth transfer

 Key Takeaways

🔹 Endowments aren’t for everyone – weigh immediate needs vs. long-term impact
🔹 Mission-aligned investing matters – ESG and responsible investing extend your nonprofit’s values beyond programs
🔹 Policies must evolve – outdated policies can cripple a nonprofit during a crisis
🔹 AI can boost efficiency – but requires policies, risk awareness, and intentional adoption

Guest Bio: Kate Azar

Kate Azar is the Director of Nonprofit Strategy at PNC Institutional Asset Management, where she helps nonprofits align investments, governance, and fundraising strategies with long-term sustainability. With experience as CEO of the Long Beach Public Library Foundation and deep expertise in endowments, ESG investing, and nonprofit operations, Kate brings practical and mission-focused insights to boards and executives navigating today’s fast-changing environment

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Resources and Links

• For Profit Law Group - Website - https://www.fplglaw.com 

• Nonprofit Counsel - Website - https://www.nonprofitcounsel.com/ 

• https://www.pnc.com/en/corporate-and-institutional/institutional-investment-management/iam-home.html 

• https://www.linkedin.com/in/kazar/
  
  

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